allison
New Member

Investors & landlords

Thank you very much, Turbo Tax Coleen, for following up on my question. I think I got it this time.  I was confused by the asset sales price and the cost.  In "Tell us about this rental asset" page,  it asks
"Cost:  The amount you paid for it, plus freight, installation, sales tax, legal fees".  I should enter the total cost I paid for the building plus the land plus rest of the fee mentioned about, and the cost of land is straight forward in understanding it.  Coming to the page of "Sales Information", it asks "Asset Sales Price", I should do as you wrote above,break up the sales price into two parts, one for the building, one for the land, even though there was not statement on how much for each one in sales paperwork.  Of course,  the closing cost etc should be divided accordingly.  Turbo Tax is not consistent in asking purchase and sale information, that is, when coming to the "Tell us about this rental asset", the "cost" means the purchase price for the building and the land together, plus expense and fees, but coming to the "Sales information", it asks for asset sales price, and it means differently.  I would like to suggest to Turbo tax to change the way of asking the rental sale or cost information, make them to be consistent.  That confusing results in a wrong and higher capital gain to pay.  Thank you very much Turbo Tax Coleen for helping out.